NJ S2927

New Jersey school districts offering 403(b) retirement plans must select a minimum of six financial institutions or pension management organizations to provide investment services to employees.

School districts with fewer than 1,000 students may select fewer than six providers but must still ensure employees have sufficient investment opportunities including annuity contracts, custodial accounts, and self-directed options.

Financial institutions selected to manage 403(b) investments cannot also serve as third-party administrators for the same plan.

Selection of financial institutions and the ability for employees to deposit accumulated unused sick leave compensation into 403(b) accounts become mandatory subjects of collective bargaining negotiations.

Boards of education and union representatives are not liable for investment losses, failure to meet expected returns, or underperformance compared to other investment opportunities.